Specialist insurer Hiscox Ltd. believe it will see net claims from Hurricane Harvey hovering around $150 million.
The number is based on an insured market loss prediction of $25 billion, excluding the federal government’s National Flood Insurance Program. Hiscox added that the estimate lands within its modeled range of claims for this kind of event.
What’s more, reinsurance protections for Hiscox following Hurricane Harvey “remain substantially intact,” the insurer said.
Hiscox said it is exposed to the storm both through its reinsurance business and also through insurance lines such as flood cover for homeowners and businesses.
Hiscox Group CEO Bronek Masojada said the Bermuda-based carrier expects insurance rates in areas affected by the storm, and in sectors such as large property, to see price increases.
“In the wider global insurance market for large risks, we expect rates to stabilize and begin to increase,” Masojada said in prepared remarks.
An estimate of net claims from Hurricane Irma is pending the gathering of further data.